Horace H. Draper Photograph Collection, 1906-1908

The Klondike Gold Rush in the Yukon territory began with the discovery of gold in Bonanza Creek, a tributary of the Klondike River in 1896. Within a span of two years, over 30,000 prospectors occupied the area. In 1900 over $22 million dollars worth of gold was mined. After the depletion of gold deposits in the area, prospectors continued their quest for gold in Alaska.

The Porcupine Mining District was established in November of 1898 after S.W. Mix and his friends Fenley and Wiley, discovered gold near Porcupine River, eight miles from Haines. The Porcupine River flows for 450 miles from the Yukon territory into NE Alaska and is one of the chief tributaries of the Yukon River in Alaska. The three friends staked claims, including Discovery, along Porcupine River and it's tributaries, McKinley, Cahoon and Glacier Creeks. By the end of the mining season, there were 50 men in residence and Jack Dalton, developer of the Dalton Trail, had built a trading post and sawmill to support the miners.

By 1899, $50,000 in gold had been recovered and the 150-acre townsite of Porcupine had 200 residents. As original claims played out and the more traditional methods of mining gold were no longer sufficient, partnerships and companies developed to continue mining operations. It became necessary to use more sophisticated and expensive mining techniques to recover the gold. The Porcupine Trading Company, owned by Dalton, Hanley and John F. Maloney, purchased controlling interest in the original claims. They build a large flume to divert the river, allowing them to recover the harder to mine gold. In 1905, the Porcupine Trading Company flume and all mining operations in the area were destroyed by flooding, ending the gold rush to Porcupine.

In 1905, a road was constructed between Haines and Porcupine, which provided cheaper access to the remote area. In 1907, The Porcupine Mining Company was organized by E.E. Harvey. Additionally, claims in the area were consolidated, providing Harvey with the means to obtain large capital backing for mining operations. In order to mine in the area, a large flume was constructed to divert the river’s water. The flume, the largest in Alaska at the time, was constructed with boards milled on site and spanned a distance of 8,000 feet, 25-40 feet in width, and had a depth of 6-8 feet. Exhausting most of the gold deposits, work ceased after a 1915 flood destroyed the lower end of the flume.

Although salvaged and rebuilt in 1917 by the Alaska Corporation, floods destroyed the flume once again. In 1926, August Fritsche gained control of the site and constructed a new 12,000 foot highline flume, which remained until 1936. Company records show a yield of $1,700,000 in gold.